November 29, 2011

Are we being faithful as fiduciaries?

“Fiduciary.” When I first heard the word it was a bit of a stumbling block, a mouthful of technical legalese. But in years of working with nonprofit and church groups, I eventually picked up its meaning by context. Basically, members of governing bodies need to be clear about their “fiduciary responsibilities” and to practice sound management and accountability about finances and other assets. The phrase has become more commonplace in my vocabulary.

But last week, while editing a document related to management of parish endowments, I tripped on the word again. Did I really know what it means? Was this strange word masking some meaning or connotation that I’ve never learned or long ago forgotten?

With the internet at my fingertips, I did a quick search and clicked the first available link: Wikipedia’s description of “fiduciary.” What immediately struck me was not the legal connotation, but the root of the word:


A fiduciary duty (from Latin fiduciarius, meaning "(holding) in trust"; from fides, meaning "faith", and fiducia, meaning "trust") is a legal or ethical relationship of confidence or trust between two or more parties.

Reading the Wikipedia description brought a host of issues to mind: the subprime mortgage crisis, the Occupy Wall Street movement, campaigns for living wages, layoffs, government benefits and deficits, and retirees worrying about pensions in an unstable market.

These aren’t just financial troubles; they’re ethical troubles. I’m not an expert on any of these pressing issues, but it seems to me we’re losing the “ethical relationship of confidence or trust” between parties in our society.

Another segment of the online description notes:

In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.

This fits well with the definition of “stewardship” that we often use in the Church. It’s about wise care for all that has been given to us, not for our own benefit, but fully in service to others.

Let’s take some time to ask ourselves, as church leaders, if we really understand the extent to which we are entrusted with responsibility to serve God and others. It’s not sufficient to purchase Directors & Officers Insurance to cover our responsibilities. Yes, buy D&O insurance and instruct parish and diocesan leaders in legal matters essential for understanding and carrying out their fiduciary duties. But maybe we can do more? I hope that in the coming year members of vestries, finance, or endowment committees spend some time reflecting on the ethical relationships of trust they have with God and one another. And I pray that we exhibit this high ethical standard in all our actions in the wider society.